Gold dropped sharply in Wednesday trading as investors contemplated the likely winding down of Federal Reserve stimulus efforts this year.

As the Fed slows its monthly bond-buying, the risk of rapid inflation dissipates, diminishing the precious metal’s appeal as a safe haven investment. Gold has fallen almost 23% during the current calendar quarter and nearly 40% since its September 2011 record high.

Gold futures for July delivery dropped 3.6% to $1,229.60 per ounce on Wednesday, according to CME Group. Gold traded as high as $1,276.20 and as low as $1,223.20. Gold bullion closed in London at $1,228, according to BullionVault.

Silver futures for July delivery plunged 4.8% to $18.59 per ounce. Wednesday’s high for silver was $19.58 while the low was $18.36.

Gold and silver funds declined in Wednesday trading.

• The SPDR Gold Trust (GLD) sank 4.2%.
• The iShares Gold Trust (IAU) fell 4.3%.
• The iShares Silver Trust (SLV) plummeted 5.4%.

Gold and silver mining ETFs retreated during the day.

• The Market Vectors Gold Miners ETF (GDX) dove 6%.
• The Market Vectors Junior Gold Miners ETF (GDXJ) fell 6.6%.
• The Global X Silver Miners ETF (SIL) dropped 6.2%.

Gold mining shares sank on Wednesday.

• Agnico-Eagle Mines (AEM) fell 4.2%.
• Barrick Gold (ABX) plunged 8.3%.
• Eldorado Gold (EGO) slid 3.8%.
• Goldcorp (GG) declined 4.6%.
• Kinross Gold (KGC) dropped 5.2%.
• Newmont Mining (NEM) moved down 5.9%.
• NovaGold Resources (NG) faded 4.7%.
• Yamana Gold (AUY) pulled back 4.6%.

Silver mining shares slumped during the day.

• Coeur d’Alene Mines (CDE) declined 5.4%.
• Hecla Mining (HL) dropped 6.6%.
• Pan American Silver (PAAS) slipped 3.8%.
• Silver Wheaton (SLW) plunged 7.8%.
• Silver Standard Resources (SSRI) fell 4.7%.

As of this writing, Christopher Freeburn did not hold a position in any of the aforementioned securities. Adrian Ash of BullionVault contributed to this report.